Flexible workspace company IWG PLC said it would open its eighth Regus hybrid work location in Calgary's downtown core in a deal that marks its first partnership in the city with a local landlord.
IWG said the partnership with Manulife Investment Management for 10,000 square feet at 903 8th Ave. SW in Alberta's largest city is the fourth landlord agreement in Canada for the coworking company, which has 3,500 locations globally under brands that include Regus, Spaces, HQ and No. 18.
"This partnership with Manulife IM reaffirms the value of flexibility at work," said Wayne Berger, chief executive of IWG Americas, in a statement. "Landlords are eager to capitalize on the rapidly growing hybrid working sector. The collaboration offers businesses and professionals in Calgary access to another nimble, pay-as-you-go office solution. These days, everything is a streaming service, including office space."
An arm of Manulife Financial, Manulife Investment Management had $800 billion in assets under management as of June 30, which includes 63 million square feet of properties in 29 cities worldwide.
IWG said earlier this year it was looking to expand across Canada, taking advantage of what it says is increased demands for hybrid work that does not involve going to a downtown head office.
The world's largest flexible office space provider has also been planning a major expansion south of the border through franchises and landlord relationships.
The Calgary location will open Nov. 14. Manulife IM reached out to IWG to help convert the 8th and 9th floors of its 10-storey, office tower into a Regus facility. The investment company remains the landlord of the space, while IWG will manage the day-to-day operations of the facility. No financial terms were disclosed.
IWG said more landlord agreements in Canada will be announced in the coming months.
The partnership comes as the Calgary office market is still stuck with an overall vacancy rate of 22.9%, according to a second-quarter report from JLL.
"Tenants will likely choose to pursue furnished and built-out spaces or choose a short-period renewal option in order to manage any unpredictability regarding interest rates," said the real estate company in the report.